A summary of the latest tax changes relating to individuals and businesses.
- The Government intends to raise the age of entitlement for Superannuation by six months each year from 1st July 2037 until it reaches 67 on 1st July 2040. Everyone born on or after 1st January 1974 will be eligible for Super from 67 years old, while the age of eligibility will remain at 65 years old for anyone born on or before 1 July 1972. The Government plans to introduce the legislation in 2018.
- Inland Revenue is going to have the authority to disclose tax debts to debt collectors where they have been overdue for at least 12 months and are greater than 30% of the taxpayer’s gross income. Always contact us if you are concerned about your tax obligations, as we can often help you to address the situation.
- The taxation of foreign trusts can be a complicated area. A foreign trust arises when it is settled by people who are not resident in New Zealand, and the income generated by foreign trusts from a New Zealand source, that is trustee’s income, is taxed at 33%. Income generated overseas is not taken into account for tax purposes in New Zealand. There are many rules and exemptions depending on circumstances, so we always recommend that you discuss your foreign trust with us to ensure that it is compliant, and that appropriate elections into the complying trust regime can be made within time.
- When you sell a patent or application for a patent, the gain is taxable. You may elect to spread the income over three years. When you purchase a patent, it should be depreciated over the remaining life of the patent.
- It is possible to claim back the 20% VAT incurred on business goods and services paid in the UK. Conditions regarding the claimant apply, including having no residence or place of business in the UK. There are strict time limits in place for the processing of refunds so we recommend getting in touch as soon as possible if you believe you may be eligible for these refunds.
- The World Bank’s 2017 Doing Business report ranked New Zealand as the easiest country out of 190 nations for doing business, praising contributing factors such as the abolishing of cheque duties and lowered ACC levies. New Zealand was the highest ranked country for starting a business, dealing with construction permits, registering property, obtaining credit and protecting minority investors.
Please contact us if you have questions regarding any of these tax areas.